Today, you will be watching a video (which has 2 parts) about Proctor and Gamble - P & G.
The content is about innovation and "Growth Factories". This is not necessarily talking about a real factory where things are made, but rather is used as an analogy (比喻) to describe new ideas and new business models being created.
Please follow these directions.....
First, read the article below and briefly summarize it. It is a good idea to just write one sentence for each of the 5 sections.
Then, watch the first part of the video. This has interviews with leaders at P & G about Growth Factories and why they started using them. This part of the video lasts about 5 minutes. (You don't need to summarise this part).
After that, watch the second part of the video, which is an interview by the Harvard Business Review with one of the men who helped P & G start the Growth Factories.
The interviewer asks the man from Innosight 6 questions. Write a summary of the interview under 6 headings. That is, watch and listen to the questions, and then summarize his answers to each of the 6 questions.
The man speaks very clearly and his answers are relatively easy to understand. The reading below and also the first part of the video will help you to understand what he is talking about, so you can go back to those if you need to.
How Can You Build a Growth Factory?
Due to its sheer size, Procter & Gamble faces an especially steep growth challenge. With a stated annual growth goal of between 4% and 6%, the world's largest consumer products company needs to increase sales on the scale of its Tide laundry soap brand each and every year. P&G called on Innosight to help meet this challenge by turning innovation from a serendipitous (偶然发现的) activity into a systematic discipline.
While P&G is widely recognized for its marketing might, its legacy as an innovator is equally rich. Over its 175-year history, the Cincinnati firm has consistently created new categories of consumer goods -- from the first disposable diaper (Pampers) to the first toothpaste with fluoride (Crest) to the first synthetic laundry detergent (Tide).
The problem of growth But in March of 2000, a slight decline in P&G's sales and an earnings warning sent its stock price tumbling. By June, P&G named a new CEO, A.G. Lafley, who brought in fresh thinking about corporate strategy and welcomed new perspectives on innovation. When an internal analysis revealed that only 15% of innovation projects were meeting success targets, senior executives began searching for ways to turn around this key metric.
During this time, a number of top P&G leaders were exploring ideas in The Innovator's Dilemma, the groundbreaking book by Innosight co-founder Clay Christensen. And not long after, P&G began collaborating with an Innosight team to build innovation capabilities that would create new brands and business models. The idea was to institute a process that was analogous (类似的) to a factory -- making innovation systematic, repeatable and reliable.
Innovation assembly lines Via its new Connect & Develop program, P&G stepped up the sourcing of raw materials -- in the form of product ideas from outside the company. "It didn't matter where the ideas came from," says Nathan Estruth, vice president of P&G FutureWorks. "We had to systematize a process to find them, to partner, to bring them in, and to turn raw ideas into innovations in our growth factory."
A key part of improving its innovation success rate was setting up "innovation assembly lines" by seeking growth from four major categories of innovation:
sustaining innovations to improve on existing products (i.e Gillette Fusion)
disruptive innovations that bring premium products to mass markets (i.e Crest White Strips)
transformative innovations based on performance breakthroughs (i.e Olay Pro-X)
commercial innovations to enhance the consumer experience (i.e BrandSaver events)
Small bets labs Innosight's "emergent strategy" approach of testing and refining market approaches was applied to a string of new product ideas. For instance, P&G had tapped into university research for a potentially transformative innovation: a probiotic (前生命期的) supplement to improve digestive (消化的) health. But there was a large degree of uncertainty as to whether the new dietary product, called Align, was a worthwhile opportunity.
Instead of committing to a national retail launch, P&G created a website and promoted Align in just three mid-sized metro areas. "We placed a small bet," says Bruce Brown, P&G's Chief Technology Officer. "And that was one of the smartest things we did in terms of rapidly progressing the Align brand."
P&G also conducted a small-scale market trial for the concept of attaching the venerable Tide brand to a new consumer experience. Deploying "jobs to be done" research, P&G found that there was high dissatisfaction with existing dry cleaners and potential room for a national brand. Tide Dry Cleaners was initially launched in just two or three locations. That allowed P&G to refine the customer value proposition and the operating plan before it began to scale to more locations.
Innovation transformation All in all, thousands of P&G staff members applied its improved innovation framework to scores of new projects and products. "Innosight has been a close partner in P&G's innovation transformation," said A.G. Lafley, who retired in 2010.
The result is that P&G has dramatically improved its innovation success rate, moving from about 15% to over 50%, meaning about half of its new product efforts are meeting benchmarks (here =goals) for success. That has helped boost overall corporate performance. Over the decade, P&G's revenue more than doubled, and profits quintupled (increased five-fold).
The commitment to growth through innovation has continued under P&G's current CEO Bob McDonald, who says, "We know from our history that while promotions may win in the short term, innovation wins in the years ahead."
But it's more than just the numbers. "There is a confidence inside P&G," says Estruth, "that the systematic approach enabled by Innosight will continue to drive our growth factory, and help us meet our goals for many years to come."
The content is about innovation and "Growth Factories". This is not necessarily talking about a real factory where things are made, but rather is used as an analogy (比喻) to describe new ideas and new business models being created.
Please follow these directions.....
First, read the article below and briefly summarize it. It is a good idea to just write one sentence for each of the 5 sections.
Then, watch the first part of the video. This has interviews with leaders at P & G about Growth Factories and why they started using them. This part of the video lasts about 5 minutes. (You don't need to summarise this part).
After that, watch the second part of the video, which is an interview by the Harvard Business Review with one of the men who helped P & G start the Growth Factories.
The interviewer asks the man from Innosight 6 questions. Write a summary of the interview under 6 headings. That is, watch and listen to the questions, and then summarize his answers to each of the 6 questions.
The man speaks very clearly and his answers are relatively easy to understand. The reading below and also the first part of the video will help you to understand what he is talking about, so you can go back to those if you need to.
How Can You Build a Growth Factory?
The problem of growth
But in March of 2000, a slight decline in P&G's sales and an earnings warning sent its stock price tumbling. By June, P&G named a new CEO, A.G. Lafley, who brought in fresh thinking about corporate strategy and welcomed new perspectives on innovation. When an internal analysis revealed that only 15% of innovation projects were meeting success targets, senior executives began searching for ways to turn around this key metric.
During this time, a number of top P&G leaders were exploring ideas in The Innovator's Dilemma, the groundbreaking book by Innosight co-founder Clay Christensen. And not long after, P&G began collaborating with an Innosight team to build innovation capabilities that would create new brands and business models. The idea was to institute a process that was analogous (类似的) to a factory -- making innovation systematic, repeatable and reliable.
Innovation assembly lines
Via its new Connect & Develop program, P&G stepped up the sourcing of raw materials -- in the form of product ideas from outside the company. "It didn't matter where the ideas came from," says Nathan Estruth, vice president of P&G FutureWorks. "We had to systematize a process to find them, to partner, to bring them in, and to turn raw ideas into innovations in our growth factory."
A key part of improving its innovation success rate was setting up "innovation assembly lines" by seeking growth from four major categories of innovation:
Small bets labs
Innosight's "emergent strategy" approach of testing and refining market approaches was applied to a string of new product ideas.
For instance, P&G had tapped into university research for a potentially transformative innovation: a probiotic (前生命期的) supplement to improve digestive (消化的) health. But there was a large degree of uncertainty as to whether the new dietary product, called Align, was a worthwhile opportunity.
Instead of committing to a national retail launch, P&G created a website and promoted Align in just three mid-sized metro areas. "We placed a small bet," says Bruce Brown, P&G's Chief Technology Officer. "And that was one of the smartest things we did in terms of rapidly progressing the Align brand."
P&G also conducted a small-scale market trial for the concept of attaching the venerable Tide brand to a new consumer experience. Deploying "jobs to be done" research, P&G found that there was high dissatisfaction with existing dry cleaners and potential room for a national brand.
Tide Dry Cleaners was initially launched in just two or three locations. That allowed P&G to refine the customer value proposition and the operating plan before it began to scale to more locations.
Innovation transformation
All in all, thousands of P&G staff members applied its improved innovation framework to scores of new projects and products. "Innosight has been a close partner in P&G's innovation transformation," said A.G. Lafley, who retired in 2010.
The result is that P&G has dramatically improved its innovation success rate, moving from about 15% to over 50%, meaning about half of its new product efforts are meeting benchmarks (here =goals) for success. That has helped boost overall corporate performance. Over the decade, P&G's revenue more than doubled, and profits quintupled (increased five-fold).
The commitment to growth through innovation has continued under P&G's current CEO Bob McDonald, who says, "We know from our history that while promotions may win in the short term, innovation wins in the years ahead."
But it's more than just the numbers. "There is a confidence inside P&G," says Estruth, "that the systematic approach enabled by Innosight will continue to drive our growth factory, and help us meet our goals for many years to come."